PROP 1C

HOUSING AND EMERGENCY SHELTER
TRUST FUND ACT OF 2006.

ARGUMENT IN FAVOR OF PROPOSITION 1C

ARGUMENT AGAINST PROPOSITION 1C

YES on Proposition 1C will provide emergency shelters for
battered women, affordable homes for seniors and low-income
families, and shelters with social services for homeless
families with kids. That is why Habitat for Humanity, AARP,
and California Partnership to End Domestic Violence strongly
urge you to vote YES on Proposition 1C.

Importantly, this measure will be funded out of existing state
resources without raising taxes.

Many of our communities face severe problems of housing
affordability, homelessness, and domestic violence. Over
360,000 Californians are homeless every night.

Last year, 5,108 women and children were turned away from
domestic violence shelters because they were full. Housing
affordability for working families in California is at historic
lows.

Safe shelter is fundamental to a decent life. YES on
Proposition 1C will:

• Expand the number of shelter beds for battered women and
homeless families with children.

Allows Seniors to Live Independently: This measure allows
seniors to live at home without the fear of being institutionalized
in a nursing home.

Helps Battered Women: “Most cities in California don’t
have adequate shelters for women and children who have
been beaten and abused. Proposition 1C begins to fix this
bad situation.” —California State Sheriffs Association

Helps Foster Youth: “Tragically, 65% of foster youth are
homeless on the day they leave foster care. Proposition 1C will
help them find stable homes.” —Homes 4 California

Critical Need for Housing and Emergency Shelters:

“Proposition 1C provides shelter for those who need help the
most—battered women, homeless families with children, and
disabled seniors.” —Habitat for Humanity, Sacramento

Yes on 1C: Part of a Long-Term Plan to Rebuild
California

Proposition 1C is part of the Rebuild California Plan, which
uses the taxes we’re already paying to build the roads, housing,
schools, and water systems we need to sustain our economy and
our quality of life for the long term. Please support the long-term plan to rebuild California by voting Yes on 1A, 1B, 1C, 1D,
and 1E.

Proposition 1C is fiscally irresponsible. 1C grows bureaucracy
with almost $3 billion in borrowed money, burdening everyone
with debt to benefit a small number of people selected by
government, including financially eligible illegal immigrants.

In their “yes” argument, 1C’s backers claim the bond would
be “funded out of existing state resources without raising taxes.”
Sadly, there is no such thing as free money.

When California sells bonds, what is really happening is that
the state is going into debt in your name. This debt gets repaid
at about two dollars of principal and interest for every dollar
borrowed.

Debt repayment has the top priority in government
spending. So, money spent to repay bonds means budget cuts
for education, roads, Medi-Cal, levee repair, prisons, and
water projects. Or, even less money for tax cuts.

More debt = less money for priorities. And, less money for
priorities = pressure to raise taxes on all Californians.

Debt should be used sparingly to build long lasting projects
such as roads, bridges, dams, schools, and universities.

Builders build homes, not government. Fees, regulations,
and government interference make homes unaffordable in
California. Freeing builders to build is the best affordable
housing program—and, it costs nothing!

Adding more debt to our state’s credit card hurts ALL
Californians. Proposition 1C would add $600 of debt and
interest payment obligations on every California family of
four. That’s $600 that could be returned to the people in
lower taxes, or spent on roads and schools.

Be responsible: vote “no.”

ASSEMBLYMAN CHUCK DEVOREMember
Assembly Budget Committee

BILL LEONARD, Member
California State Board of Equalization

MIKE SPENCE, President
California Taxpayer Protection Committee

Proposition 1C would add almost $3 billion in new
government debt and expand bureaucracy, but it won’t make
housing affordable in California.

Sacramento politicians placed Proposition 1C on the ballot
at 3 in the morning. Why did they vote in the middle of the
night with little debate and no oversight? What were they
trying to hide?

Proposition 1C won’t make housing more affordable for
the average Californian. What it will do is grow government
and force the average California family of four to pay over
$600 in debt and interest while INCREASING PRESSURE
TO RAISE TAXES.

What will $2.85 billion of new government borrowing
buy? In a state of 37 million people with over 12.2 million
housing units, not even a drop in the bucket. Instead,
Proposition 1C will empower bureaucrats to dispense cash
to a select few who meet the government rules and are lucky
enough to be chosen to get the money borrowed in your
name.

It’s true that only 14 percent of families in California
can now afford the median-priced home. But, government
itself is to blame for this problem. More than half the cost
of a home or apartment rent in California is due to high
taxes, overregulation, environmental lawsuits, fees, and
government interference in the free market—all of which
doubles the high cost of housing.

So, what do the politicians propose? Their solution:
another government program that allows affordable housing only for the lucky few who can get their hands on your
money.

The true way to make housing affordable again in
California is to allow builders to build homes and
condominiums and apartments and then allow people to pay
to live in them—without the government telling everyone
what to do and how to do it.

Instead, the text of Proposition 1C reads like the failed
government housing programs of the past, with references
to, “target population,” “Housing Finance Committee,”
“supportive housing,” “operating subsidies,” and “pilot
programs.” Along with millions of dollars for bureaucracy
and even $400 million for parks that house no one at all!

One last reason to vote “no” on Proposition 1C: we can’t
afford more debt. For every dollar we borrow, we and our
children will have to repay that dollar plus a dollar in interest
costs. That means the average California family will have to
pay more than $600 in additional taxes over the life of this
bond, half of which will be to pay the roughly $3 billion in
interest fees alone.

Vote “no” on Proposition 1C. We can’t afford it, and it
won’t make housing more affordable in California.

Yes on Proposition 1C makes shelters and homes available
to battered women, seniors, homeless children, low-income
families, and former foster youths. It won’t solve all of these
problems overnight, but it is an important step forward.

Proposition 1C will not raise taxes. The measure will be
paid for out of existing state resources. Just as important,
Proposition 1C requires independent audits to protect
taxpayers and ensure shelters and homes are built as
promised.

This measure is the result of years of planning by experts
in the problems of homelessness and domestic violence, as
well as the housing crisis facing the elderly, families with
children, people with mental illness, and veterans.

That is why leading California organizations have
endorsed Proposition 1C, including:

Habitat for Humanity, San Diego, Greater Los Angeles, and Sacramento

AARP

Congress of California Seniors

California Partnership to End Domestic Violence

California Chamber of Commerce

Orange County Business Council

League of Women Voters

Foster Youth Alliance

Vietnam Veterans of California

Proposition 1C is a fiscally responsible part of the Rebuild
California Plan, a long-term plan to build the roads, housing,
schools, and flood-control systems we need for California’s
future.

Yes on Proposition 1C addresses problems we can’t afford
to ignore. It will provide clean and safe accommodations for
seniors, shelters for homeless families, and secure homes for
battered women. Please help California take a positive step
forward by voting Yes on Proposition 1C.